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SSM - Service Stream

Discussion in 'Stocks Q-Z' started by pointr, May 5, 2008.

  1. pointr

    pointr Well-Known Member

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    Apologies if there is already a thread on this, I did a search.We got our foothold in this company via a takeover of TCI. It does things in the telecommunication industry and is developing a presence in utilities. We have increased our holdings"averaging down". It owes us $1.45. Its ASX releases only look positive to me, yet its price only drifts lower and lower. It's numbers look OK on Commsec's site. Does anyone out there have any views on this one. Is its graph about to make a double bottom or continue its down trend:confused:
     
  2. ROE

    ROE Well-Known Member

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    I have TCI (90 cents) way back and merge with SSM and still holding ... I'm thinking of topping up more SSM at this price but the trend doesnt look too good. I wait till it settle then I am in.
     
  3. pointr

    pointr Well-Known Member

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    Hi ROE,
    it still looks good to me, but I've got enough dollars in it at present.perhaps the confession season leading up to the year end may shed some light on the performance of their new businesses and contracts. You would think that telecommunications and utilities would be a growth story.
     
  4. diliff

    diliff Well-Known Member

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    Yeah, I'm pretty puzzled by the significant drop in SP recently too, as all news seems quite positive. Service Stream seems to be growing considerably at the moment and buying its way into that growth, yet still maintaining a profit. Given the P/E ratio is 14 with this sort of growth, it isn't exactly overpriced I wouldn't think... I've got significant holdings in SSM (at a loss at the moment, obviously!), but I'm looking to top up soon, just waiting to see where the bottom is. Surely it can't be much lower..?
     
  5. diliff

    diliff Well-Known Member

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    Well, this thread sure is hot! ;)

    Anyway, I think we've seen the bottom hit at 1.14 - congrats to anyone who managed to get in there. There was a nice spike of volume (185,000) as it plummeted from 1.18 to 1.14 but it has been otherwise pretty quiet. I jumped in at 1.21 and hopefully we'll see it back around 1.40ish soon... Just my two cents anyway.
     
  6. pointr

    pointr Well-Known Member

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    Well diliff at least we dont need private messaging;). When I saw the optus announcement recently of a major mobile upgrade I wondered if any of this work may filter down to SSM. They say fortune favours the brave, maybe fortune may favour the patient as well:)
     
  7. pointr

    pointr Well-Known Member

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    The last several announcements for SSM show that the directors are buying, I will take this as good news. I haven't read the federal budget in depth but there was talk of further broadband roll out/ infrastructure, so there would have to be more opportunities for SSM to perhaps throw there hat in the ring for some of this work. My:2twocents
     
  8. ROE

    ROE Well-Known Member

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    Look like the trend has settle and true to my word I load up another 10,000 shares today at $1.28 :D
     
  9. pointr

    pointr Well-Known Member

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    Good on you ROE, I think we all will make a dollar unless there is some bad news not revealed as yet. The dividend dollars are nice but a juicy gain in the price would be sweeter:2twocents
     
  10. ROE

    ROE Well-Known Member

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    Unless SSM management really stuff up I don't know how they cant make money.

    there are only 3 major Telco providers to Telstra, SSM and the others which own by Leighton (VisionStream and Silcar)

    SSM also a provider for Optus so there isn't too many player servicing this sectors so profit should be nice and steady between the three of them :D
     
  11. diliff

    diliff Well-Known Member

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    One word.. ouch. Anyone know why this stock has dived the way it has?

    Looks like a severe lack of interest/volume at the moment. I haven't got any spare cash to play with, but it looks quite undervalued at the moment.
     
  12. pointr

    pointr Well-Known Member

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    Hi Dilif, I'm a bit underwhelmed myself. I sent an email to the company a week or 2 ago and got a reply from the CFO that he felt it was just general market downturn and that they were well placed to capture business from infrastructure spending. He also said he would pass on my message of concern re the shareprice to the board. I wanted to increase some holdings in small energy companies(most of which we've had for years:)), so I sold 30% of our SSM holdings to fund these purchases. Time will tell if that was a smart or dumb move:2twocents
     
  13. pointr

    pointr Well-Known Member

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    Hi again diliff, a director has bought some more shares, perhaps that should give us some comfort:confused: Looking back over last years announcements there was a June update so perhaps the company could be so kind as to do the same again for its investors and the wider market
     
  14. diliff

    diliff Well-Known Member

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    Would have loved to have bought in when I last posted. Isn't it funny how extreme lack of interest is punctuated by extreme buying when you least expect it. Won't be happy til it heads above 1.60 though - the price I originally paid for it. ;-)
     
  15. ROE

    ROE Well-Known Member

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    I bought them at 90 cents, again at 1.50, again at 1.28 and again 1.06 (last week)

    keep buying them if it dipped again :D.

    Not many company I was confident about and my buying pattern prove it

    and again :) when the opportunity arise
    20,000 shares and counting
     
  16. diliff

    diliff Well-Known Member

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    Well, we've just had another dip... This stock seems to move according to its own set of obscure rules that I'm yet to understand. No correlation to the market at all, as far as I can see!

    I noticed on the time and sales that there was a single 3 million share transaction for 1.10 at 11:36am today. Ouch. Wonder who/what that was? It was the single highest day volume in the last 6 months, and about 12 times greater than average. I also wonder how it didn't distort the price more than it did, and why it was below the bid price (bid was 1.105 and ask was 1.16)...
     
  17. diliff

    diliff Well-Known Member

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    Again: Ouch... Why is SSM dropping like it is? 47% drop in 3 months, whereas the All Ordinaries has dropped only 10% in 3 months. I would have thought it would be weathering the downturn better than this.
     
  18. pointr

    pointr Well-Known Member

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    Hi diliff and anyone else out there in SSM land. At last an announcement from the directors confirming previously stated guidance and a positive outlook:)
    And now; is the market and particularly the 'buyers' convinced. I'm tempted to put a few dollars back, oh well off to Comsec:2twocents
     
  19. pointr

    pointr Well-Known Member

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    Oh well fellow faithful holders back up through $1.00 on a day when the market went south. Hopefully this is the start of some renewed interest in this company leading to some capital gains to go with the nice dividends.:)
     
  20. diliff

    diliff Well-Known Member

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    Certainly hope so. I've been waiting far too long for SSM to head upwards! I did sell about 30% of my stock a week or two ago to cover something else... Bit of a shame, but we'll see if the rise continues, as you said. Results are to be announced in a couple of weeks, and as long as they aren't awful (could they be? I would have thought that it would be business as usual, despite the economic downturn), I'm hoping we see a big increase in share price...

    But then, anyone who knows anything about SSM should already they're relatively insulated from the downturn, surely? If so, why have they dropped so much - significantly MORE than the Aus market has, for that matter?
     
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